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Argentina hydrocarbons watch

Bnamericas Published: Monday, September 06, 2021
Argentina hydrocarbons watch

Argentina’s government authorized a 6.6% increase in the price of bioethanol produced from sugarcane or corn.

In a resolution, the energy department set the price at 59.35 pesos (US$0.60) per liter. 

The resolution applies to bioethanol that is blended with gasoline. The minimum proportion of bioethanol that must be used in the finished mix is 12%.

Congress approved a new biofuels bill in July. Under the rules, the minimum proportion of bioethanol in the finished gasoline mix may eventually drop to 9%.

Secondary legislation governing its implementation has not been published yet.

ALSO READ: Game of Fuels

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Chubut province urged local companies operating in the hydrocarbons, energy, mining and maritime sectors to participate in a project to build a database of such firms in Patagonia.

Key objectives are mapping capabilities and understanding what firms need to become more competitive, Chubut province said. The findings would be used in the development of new projects, training proposals and support solutions, as well as the creation of new programs and public policy, it added. 

The project is being spearheaded by a working group comprising Chubut, Neuquén, Río Negro, Santa Cruz and Tierra del Fuego provinces, along with national industrial technology institute INTI and associations such as the San Jorge Gulf chamber of oil services companies

All hydrocarbons provinces except Neuquén are conventionals-focused. Nationally, output of conventionals has been trending down, as production of shale oil and gas, chiefly from Neuquén, home to the bulk of shale play Vaca Muerta, has been trending up.

DAILY OIL PRODUCTION BY PROVINCE IN JULY

Neuquén: 31,034m3/d

Chubut: 21,898m3/d

Santa Cruz: 11,182m3/d

Mendoza: 9,011m3/d

Río Negro: 3,804m3/d

La Pampa: 2,223m3/d

Tierra del Fuego: 995m3/d

Salta: 570m3/d

Argentine state (Austral basin, offshore)542m3/d

Formosa: 35m3/d

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Chubut has declared a provincial water emergency, following in the steps of Neuqúen.

An associated law was published in the province's official gazette on Monday.

Under the legislation, among other obligations, authorities are tasked with promoting the rational use of water and developing a water data-sharing mechanism. To help finance the work, the law also establishes a 500mn-peso (US$5.1mn) fund, split between the provincial water institute and the infrastructure, energy and planning ministry. Some funds are earmarked for the installation of pumping equipment at Lake Musters.

Fines are also increased.

Neuquén province recently issued a 180-day provincial decree against a backdrop of a long-standing drought impacting the Neuquén, Limay and Colorado river basins. 

Argentina, like other parts of Latin America, is in the grips of a lengthy drought.

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